Inflation rate rises marginally to 12.14 per cent news
18 September 2008

Mumbai: The annual rate of inflation based on the wholesale price index rose marginally to 12.14 per cent for the week ended 6 September, after three weeks of moderation ending at 12.10 per cent the week ended 30 August.

Inflation rose mainly on account of a rise in the prices of primary articles, food articles and fruits and vegetables. The primary articles index was up 1 per cent and the food articles is up by 1.4 per cent while that of fruits and vegetables has gone up by 6 per cent.

Prices of non-food articles rose 0.2 per cent. Prices of fuel, power and light, however, were down 0.2 per cent and those of manufacturing products up 0.1 per cent.

The slight increase comes even as figures indicate that the fuel and power index has slipped by 0.2 per cent while manufacture products index has plunged to 10.78 per cent.

The finance ministry last week said the rate continued to slide despite the rise in prices of 30 essential commodities from 6.9 per cent to 7.52 per cent, though none of the indices in the broad category declined. However, prices of some food items, including imported edible oil and fruits, saw a fall.

The inflation rate was at 12.63 per cent in early August - the highest in the current data series starting in April 1995.

Inflation for the week ended 12 July has been revised to 12.13 per cent from 11.89 per cent.

The inflation rate has been ruling well above the RBI's comfort figure of 7 per cent. The government expects inflation to hit 13 per cent before moderating from December, before settling at 8.0-9.0 per cent by end-March 2009.


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Inflation rate rises marginally to 12.14 per cent